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Captains Of Industry Say Suspension Of Duty Will Export Jobs And Choke Small Businesses

1 year agoMon, 15 May 2023 09:30:13 GMT
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Captains Of Industry Say Suspension Of Duty Will Export Jobs And Choke Small Businesses

Confederation of Zimbabwe (CZI) president Kurai Matsheza has said the recent suspension of import duty and import value-added tax (VAT) on 11 basic groceries by the Government will have a negative impact on the economy.

On Thursday, Finance and Economic Development Minister Mthuli Ncube announced several measures to stabilise the exchange rate and prices.

Among other things, Ncube scrapped import duty and import value-added tax (VAT) on selected products.

On Friday, Finance and Economic Development permanent secretary George Guvamatanga directed Zimbabwe Revenue Authority (ZIMRA) commissioner-general Regina Chinamasa to suspend import duty and import VAT on maize meal, rice, milk, flour, salt, cooking oil, sugar, petroleum jelly, toothpaste, bath soap and washing powder.

Speaking to NewsDay on Sunday, Matsheza said the move choke local manufacturers and was also tantamount to exporting jobs. He said:

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The lifting of duties on the 11 products has more negatives than positives on the economy.

This measure means as a country we’re outsourcing the production of those products, hence exporting jobs.

While the intention is to protect the general consumer from the price increase, the general consumer will not be importing, it’s small businesses and big to some extent who will be importing and then retailing in US dollars.

This deepens dollarisation as basic goods will only be available in USD [supposedly at ‘low’ prices].

The announcement came after shops hiked prices of basic food items in response to the rapid weakening of the Zimbabwe dollar against other currencies.

The removal of import duty on products can result in lower prices for consumers and improved access to goods.

However, removing import duty may also have some negative effects such as loss of government revenue, adverse effects on domestic industries, and dependency on foreign producers.

More: Pindula News

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22 Comments

Wechidhaka · 1 year ago
Skala lotion inobva Tanzania inoita $1 muno kana yadhurisisa,Elegance lotion inobva paWillowvale apo inoita $2.50 kubudiriro saka zvinemusoro ndezvipi kumunhu atambura kuwana US racho.local industry ma1 pamberi nezvakachipa
Tel Aviv · 1 year ago
Zvinhu ngazviwande chete. Ane zvakacheaper ndiye anotengerwa full stop.
Ed · 1 year ago
we live politics, eat politics, bath politics and we are towards elections now we want votes so we make political decisions okay
Asalif · 1 year ago
Nestle Zim and Colgate Palmolive posted job opportunities recently on this platform which means they are down scaling again since production will be low because of competition on quality of goods and pricing locally manufactured products are of cheap quality but expensive
Putin 🇷🇺🇷🇺🇷🇺🐊🐊🐊 · 1 year ago
Its a good move from the government their monopoly is very bad the shop owners
inini · 1 year ago
they don't care about their customers they just want 500% profit ndoka lyf kemuzimbabwe kana mumwe akafa nenzara hameno hake
muhodhi · 1 year ago
totodawo kuorder muno zvinhu zvenyu.Itayi kuti zvitengeke hamutombotioni tichienda ikoko, ko munochemeyi marambidzwa kutengesa here nhayi aCZI
Gafa 2 · 1 year ago
to hell with u CZI we need cheap products isu aaaah, jus reduce yo prices n u will c us buying them in bulk, hw can can a local produced product be expensive more than a foreign produced products irrigardles of transport costs n duty?????????
chips · 1 year ago
National Foods salary us$139.00 salary increment still pending ichingonzi iri kuCourt since June last year Slavery in Zimbabwe
doug · 1 year ago
Which jobs? How real are those jobs they are afraid will be exported? Are the few workers in those jobs happy with their pay and conditions of service? Is this easing of restrictions not going to help that worker, as most of the extended family members he or she is helping will be able to access essential goods at a reasonable price? As for the currency, most of the buying and selling in the country is now done using foreign currency.
Consumer · 1 year ago
they won't have nothing to say, all they want is to make profit than doing what benefits the comsumers. What is consumer protection saying about that, I guess they favouring the consumer in such a way that they will not have to deal with high prices and less weight of goods
Anonymous · 1 year ago
Duties on raw materials should be scrapped before duties on finished products. The reason it is higher is due to the additional costs of transport, duties and clearing costs. This is compounded by the fact that most companies are buying from South African companies, so duties into SA and then dutied to us. Compounded by poor payment of previous invoices and negative perception of Zimbabwean companies, means a premium would charged either to recover previous debts or mistrust in full payments being received by the supplier. Also volume discounts would not apply as local industry would not receive preferential discounts as the raw material source market would prioritise for their local industry's consumption which would be much higher than ours as the local industries struggles to compete for landed raw material pricing. Not to say that in all cases, local industry would charge fair markups. Local industry should be afforded the opportunity to compete on a fair playing field. There can be no development of local demand and buying power, if others keep making everything for us. If there is to be any further employment, local industry should be prioritised or why should business owners bother. Which develops more jobs, manufacture or sales? One person can sell 100 different products, but it could take 5 companies of 30 people to produce and distribute those 100 products.
textbook economic dostaz dirty · 1 year ago
ukuhukura economics dostaz from the book guys paground tikuratidze Kuti nyika ino zvese nevene vayo mese hamuna mapepa munorarama nehukopo kopo unotoona civil servant rinotambira RTGS rikarwarirwa kuchidiwa procedure ye 5000yusa robhadhara yoitwa but Rosina payslip inosvika 5thau yusa yacho saka mese Muri mbavha native ngongirandi siyanai ne gold mafia imi mutoriwo economic mafia mese
Anonymous · 1 year ago
Economics from the book must relate to the ground. If it doesn't then there are problems, but you cannot make products cheaper by getting other companies in other countries to manufacture them. That is short term fix with long term complications. There must be an increase in local competition, not importing products to force local companies to lower prices. That is like pushing a rock up the hill, when you find it is too heavy you cut it in half and decide to push only half up the hill. You still need to go back and fetch the other half. Getting others to assist makes the burden lighter. Competition will bring about more development. Monopolies will stagnate the economy. Zimbabwe produced all the basics locally and was economic for every working man to afford, why is that all believe that is no longer achievable other than importing. For one, for many years, there has been demand for quick, lazy solutions, pushing for external manufacture that does harm to local industry in the long term, to the benefit other nations. The pot still has the same quantity of yusa. Importing just means you need to spend more for the same product. Raw materials are cheaper than finished product. Local industry must also put their hand up regionally and it cannot do that if there is no local support. If all inputs are local, what is the excuse for increasing prices? If they require inputs from outside, then measures should be put in place to support making them more cost effective. The only way to stop companies using those cost saving measure to make more profit is to increase local competition. Not increase external participation in the local market. Importing product will achieve nothing other than push prices higher in the long term and we will be back to the beginning. The rule of insanity is doing the same thing over and over and expecting a different result. Fix the source, not try and change the outcome with the same solution.
Hokage · 1 year ago
@Anonymous clearly the only solution here is TO RUN AWAY! , RUN FOR YOUR LIVES! , SAVE YOURSELVES!!, GET THE FU.CK OUT OF AFRICA !!!! if you want to lead a life in which you will look back and say , "hey those were some pretty good times , dancing on the beach with my wife , watching the sun set " RUN PEOPLE! RUN⚡
· 1 year ago
With all due respect to CZI, exactly how many jobs are there in the formal sector? In a country where 95% of the eligible working population is unemployed, another 300 jobs are negligible. Please don't hide behind jobs. Manufacturers and wholesalers/retailers more interested in the bottom line i. e. profit, not job retention. They are mourning because they are inefficient and cannot compete with other producers. Were they efficient their costs of production would have been lower because they have the advantage of proximity to the market. How come cooking oil that is transported all the way from Durban or Pietermaritzburg lands in Harare cheaper than a similar product produced in Chitungwiza or Ruwa? CZI, your members should swim or sink.
Gafa · 1 year ago
correct my bro u ar straight on the point
@x2 · 1 year ago
Bamunini kugadzira zvinhu muZim kunodhura than SA , magetsi muno hamuna , fuel yemuno inodhura than yeku SA saka hazvifi zvakafanana
Anchorage · 1 year ago
Saka tofira izvozvo here, ngazviwande kana muchida zvemuZim motenga henyu hamuna kurambidzwa
tk · 1 year ago
which local industry do they even want to protect, if the supposedly local industry z there then it shd b strong enough to face external competition hence efficiency n low prices for the consumer. Y would u fear to compete with imports whose price include transport cost wen u r producing locally. these Cry babies so...... exporting jobs kkk which jobs, are there even jobs to talk about
Anonymous · 1 year ago
That is a valid point raised there. Cooking oil for example is almost all produced locally and that has to be protected

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